(16.09.26) – The 2024/25 tax year saw rises to both the number of adult ISA accounts subscribed to and the amount saved, according to new data from HMRC.
In 2024/25 the number of adult ISA accounts rose 12% to 16.8m, up from 15m in 2023/24 and from 12.4m in 2022/23.
The rise continues the recent trend in the numbers of savers in ISA accounts following falls in the 2020/21 and 2022/23 tax years.
The upward trend is largely attributable to the increase in the number of Stocks & Shares ISAs subscribed to (802,000 new accounts to over 4.89m total).
The number of accounts subscribed to in Cash has risen to 10.71m, representing 64% of all accounts, a 2.2% reduction from the previous tax year
Around £135.7bn was subscribed to adults ISA in 2024/25, an increase of £37.2bn compared to the 2023/24 tax year. The increase was primarily driven by the rise in cash ISA subscriptions which grew 37.5% (£26.1bn).
Stocks & Shares ISA subscriptions followed with a 20% increase (£6.1bn).
Jim Reeve, Interim Managing Partner at national financial advice firm Continuum, said the increased attractiveness of ISAs is likely partly due to increased use of them in estate planning to reduce income tax liabilities.
He said: “The 2024/25 tax year saw former Chancellor Rachel Reeves announce her plans to subject pensions to inheritance tax from 2027, leaving many savers looking for other ways to pass on their wealth to loved ones rather than the tax man. Whilst the full details of how this will work are still under review, many are already reviewing their estate planning options to make sure they can still pass on as much of their wealth as they can IHT-free.
“ISAs appear to be one of the unintended winners of this policy change, with considerable increases in both the number of subscribers and the amount subscribed despite savers continuing to face rising costs likely to be at least in part due to the plans to tax unused pension funds.”
Editors Notes – About Continuum
Continuum, headquartered in Plymouth, was established in 2014 as a National IFA brand to offer a modern, new financial advice experience.
The business focuses on creating a three-way partnership between Continuum, the adviser and the client, in an environment where each party can only succeed and grow if the other parties also succeed and grow.
By educating customers through an award-winning financial education programme and offering our clients a loyalty programme, Continuum develops long-term relationships strongly endorsed though market leading Net Promoter Scores – most recent customer survey delivered a score of +90.
An in-house discretionary model portfolio service, My Continuum Wealth, was initiated in July 2021 to offer an exclusive MPS (Model Portfolio Service) to Continuum advisers.
Continuum now holds assets under influence in excess of £3.12 billion.
In December 2020 Continuum was awarded ESG kitemark (ESGmark) accreditation in recognition of its business approach of Environmental, Social Responsibility and Governance matters.
Continuum is a trading name of Continuum (Financial Services) LLP which is authorised and regulated by the Financial Conduct Authority. Continuum (Financial Services) LLP is a Limited Liability Partnership.
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Katherine Mitchell 07917 855881 kmitchell@brandonconsultingservices.co.uk
